SB147 Alabama 2019 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: J.T. WaggonerSenator
Republican
Session: Regular Session 2019
Title: Retirement, benefits for local employers participating in ERS, retirement benefits given to Tier I plan members authorized for Tier II plan members, Sec. 36-27-6.5 added
Summary: Allows local employers in the Employees' Retirement System to elect to give Tier II members the same retirement benefits as Tier I members, with new contribution requirements and oversight.
What This Bill Does
The bill adds a new section that lets ERS-participating employers choose, within 24 months of enactment, to provide Tier II members the same retirement benefits as Tier I members. The ERS Board of Control can deny the election based on reviews of compliance and financial stability, and the decision is irrevocable but subject to reconsideration within 24 months. If the election takes effect, Tier II members must contribute 7.5% of their earnable compensation (8.5% for firefighters, law enforcement officers, and correctional officers). For service earned under different tiers, benefits are calculated using the respective tier’s rules, and the pension is determined by the tier in which the member withdraws. The act becomes effective immediately after the Governor signs it.

Who It Affects
Tier II plan members (employees in the Tier II tier): could receive the same retirement benefits as Tier I members if their employer elects the change, and their contributions rise to 7.5% (8.5% for designated public safety roles) once the election is effective.
Local employers participating in the Employees' Retirement System: may adopt a resolution within 24 months to offer Tier I-level benefits to Tier II members; must obtain Board approval or denial, and the election is irrevocable and tied to the next fiscal year start.

Key Provisions
Adds Section 36-27-6.5 allowing participating employers to elect, by resolution within 24 months of the act’s effective date, to provide Tier II members the same retirement benefits as Tier I members.
The ERS Board of Control may deny the election based on staff reviews of compliance history and the local government's financial stability; the local entity can seek reconsideration within 24 months.
Election is irrevocable and becomes effective at the beginning of the fiscal year following receipt of the resolution by ERS.
If Tier I contributions have not been increased as required by Act 2011-676, the employer must create a plan to gradually raise Tier I member contributions before electing to grant Tier I benefits to Tier II members.
From the effective month of the election, Tier II members contribute 7.5% of earnable compensation; those in firefighter, law enforcement, or correctional roles contribute 8.5%.
For creditable service earned across different Tiers, each tier’s benefit rates apply to the service earned within that tier; overall pension is determined by the member’s Tier at withdrawal.
The act becomes effective immediately after the Governor signs it.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Retirement Systems